Online Ad Revenue dipped in 2009, but is on the rise in 2010, breaks record
The internet has become one of the most powerful income generators of the recent years.
Information technology companies are some of the richest in the world and this tells us
how much revenue can be generated on the internet. Online advertising world wide revenues
have jumped from a meagre $8.1 billion in 2000 to a mind blowing $21 billion in 2009.
This is proof enough for the CEO’s of any company to tap into this vast potential.
Online advertising is a money minting business and has seen rapid changes within the systems,
procedures and methods that are adopted. World economy went through a tough phase in the
2008-09. It was not classified as a full-fledged depression but it came dangerously close.
Many multi-billion dollar companies and specifically banks went bankrupt. This was seen to
have a rippling effect on the advertising expenditure.
Online advertising saw its worst performance in the beginning of 2009. This was the time the
recession hit the hardest. Internet sales sharply decreased and budgets of the advertisers
rapidly shrank. This made the profits of many advertising companies plunge. But now, we have
seen clear signs of a revival. Internet is back on track and its power has again come into
focus. With the worst behind us, ad spends on the internet have gone up tremendously. The
income that has been generated from this type of advertising seems to even hit the print media.
This is because the amount of people who read has gone down dramatically and everything is slowly
shifting to the Internet. Hence spending on advertising on the internet seems to be a very good
idea now. In the US alone, online advertising revenue has gone up around 2.26% during the quarter
ending the year as a sign of healthy recovery. One of the most important things we need to
understand while talking about online advertising is that it varies tremendously between the
different means of reaching the customer depending on the product or service which needs to be sold.
There are many companies which are today dedicated to advertising on the Internet. They provide
the advertiser with custom solutions advising them as to how the advertising has to be done. With
the recession over, the big companies have allocated more towards online advertising. Hence it is
not a wonder that the revenue which has been generated from online advertising industry has broken
records. This is good news for the advertising companies as well as the companies which are investing
making it the best possible time to invest in online advertising.